{"id":9242,"date":"2024-09-25T03:30:35","date_gmt":"2024-09-25T03:30:35","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=9242"},"modified":"2024-09-25T03:30:35","modified_gmt":"2024-09-25T03:30:35","slug":"ethereum-etfs-see-largest-outflows-since-july-is-waning-institutional-demand-hurting-eth","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=9242","title":{"rendered":"Ethereum ETFs See Largest Outflows Since July: Is Waning Institutional Demand Hurting ETH?"},"content":{"rendered":"

Ethereum (ETH) exchange-traded funds (ETFs) posted the largest outflows since July 2024, with $79.2 million leaving the market on Monday, according<\/a> to data from SoSoValue.<\/p>\n

Ethereum ETFs Continue To Underperform<\/h2>\n

Despite the highly-anticipated and strong<\/a> start for Ethereum ETFs in July 2024, the latest crypto-based ETFs have, thus far, failed to sustain institutional interest. The latest data from crypto ETF tracker SoSoValue shows that ETH ETFs witnessed a daily total net outflow of $79.2 million on September 23.<\/p>\n

Upon closer inspection, it appears that the bulk of the outflows originated from Grayscale\u2019s Ethereum Trust (ETHE), which saw $80.6 million exiting the fund, bringing its cumulative net total outflow to $2.85 billion. In contrast, Bitwise\u2019s ETHW posted net inflows of $1.3 million, propelling its cumulative net total inflows to $320.3 million.<\/p>\n

It\u2019s worth noting that the latest exodus of funds from Ethereum ETFs is the fourth-largest in terms of value since their inception on July 23, 2024. The total net assets (TNA) of Ethereum ETFs stand at $7.2 billion, compared to $57.9 billion for Bitcoin (BTC) ETFs.<\/p>\n

The continued underperformance of Ethereum ETFs relative to Bitcoin ETFs does not inspire much confidence in ETH\u2019s future price potential. The ETH\/BTC trading pair provides clarity, as the ratio is currently trading<\/a> at levels it last witnessed way back in April 2021. ETH has erased all the gains against BTC it recorded over the past three years.<\/p>\n

The recent subpar performance of ETH against BTC isn\u2019t surprising since the latter recorded a new all-time-high (ATH) value of $73,737 in March 2024, while the former has yet to breach its ATH of $4,878 recorded in November 2021.<\/p>\n

Challenges may lie ahead for ETH ETFs as speculation grows about the potential launch of ETFs for competing cryptocurrencies, such as Ripple\u2019s XRP. Grayscale recently unveiled<\/a> the first XRP trust in the U.S., paving the way for a future potential XRP ETF.<\/p>\n

Analysts Confident About Ethereum\u2019s Comeback<\/h2>\n

Ethereum\u2019s challenges have not dampened the optimism several digital assets analysts shared toward the second-largest cryptocurrency by market cap. Near the launch of Ethereum ETFs, research firm ASXN predicted<\/a> that the funds could attract monthly inflows ranging from $800 million to $1.2 billion.<\/p>\n

Similarly, cryptocurrency exchange Bitwise\u2019s Matt Hougan recently dubbed<\/a> Ethereum the \u201cMicrosoft of blockchains,\u201d indicating confidence in the leading smart contract blockchain protocol. Hougan added that ETH could see a trend reversal to the upside in Q4 2024. ETH trades at $2,610 at press time, down 1.7% in the last 24 hours.<\/p>","protected":false},"excerpt":{"rendered":"

Ethereum (ETH) exchange-traded funds (ETFs) posted the largest outflows since July 2024, with $79.2 million leaving the market on Monday, according to data from SoSoValue. Ethereum ETFs Continue To Underperform Despite the highly-anticipated and strong start for Ethereum ETFs in July 2024, the latest crypto-based ETFs have, thus far, failed to sustain institutional interest. The […]<\/p>\n","protected":false},"author":0,"featured_media":9243,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-9242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/9242"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9242"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/9242\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/9243"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}